Sure and steady success

Very few things are sweeter than good news coming when it is unexpected. Last week, I received news that RFM Corporation was included in the Micro Cap segment of the FTSE Global Equity Index (GEIS). It wasn’t a mere reclassification within FTSE’s existing size buckets; it was a new inclusion.

Benchmarks such as FTSE GEIS are used by institutional investors and other market participants to track and allocate investments across markets. Constituent reviews can affect the investable universe of funds and portfolios that track the indices. Inclusion in the index means increased visibility and a wider opportunity for RFM to be evaluated and considered by a wider range of global investors.

Now, while I am evidently a biased source of this news – I do lead the company – I feel I am entitled to savor, even for a moment, the satisfaction that comes from an independent validation of the hard work that went into the work.

For the longest time, one of the comments of foreign and local stock investors about RFM and its stock is the low level of stock trading volume. The investors I meet and have met have good things to say about the healthy balance sheet, the strength of our brands Selecta, Fiesta and Royal, as well as RFM’s brands’ leadership in the pasta, milk and ice cream categories, but they always noted the thin volume of stock trading of RFM.

But that didn’t tell the whole story. Prior to the inclusion in FTSE GEIS, RFM’S market capitalization steadily grew as income and cash dividends also grew. This was mainly a reflection of the good brands and robust balance sheet (meaning, it was very liquid and had almost no bank loans).

From a broader viewpoint, the inclusion in the index is recognition of RFM’s strong market position, consistent financial performance, disciplined capital management and commitment to maintaining high standards of governance and disclosure. The inclusion underscores RFM’s attractiveness as an investable Philippine consumer goods company and highlights the value created through the strength of its brands, resilient earnings profile and long-term growth strategy. What this means for our existing investors – those who have long put their faith in our company – is that we are now on the radar of more asset managers, funds and international investors that use the FTSE indices as reference benchmarks.

It becomes sweeter because it is a result of the sure and steady work of so many people behind the scenes, and it was built with patience over many years. I think of myself as a steward of the company. It was built by my father and my grandfather, entrusted to my leadership and now I do my best to keep it as healthy as I found it.

I can’t help but draw parallels between my day job at RFM and my advocacy to promote entrepreneurship among Filipinos. I’ve been in the latter for a little over 20 years – much less time than I’ve spent working for RFM. I’ve also received external validation for my work with MSMEs, most recently from the ASEAN-Korea Center, and it keeps me going despite the challenges. But I don’t believe the “finish line” – the medal – will arrive as an announcement that, yes, there is Prosperity for All because of entrepreneurship. I think it will come as a slow realization: that life has indeed become better for Filipinos, especially those at the bottom of the pyramid.

I imagine that we can finally say, “Success!” when Filipino farmers have become skilled entrepreneurs (and millionaires); when our biggest conglomerates build systems that not only include MSMEs, but mentor them across their value chains; when our most dynamic new enterprises come from women, the youth and the creatives and when overseas Filipinos find it more feasible to come home and build their businesses here. Maybe even when Filipinos have their pick of job offers because they’ve built the skills that attract high-level work – partly because there were enough MSMEs to give them that first step and access to training that made them more in-demand as they learned to adapt to digital technology (and maybe AI).

It’s a nice thought to finally achieve these goals, but I think we will cross the finish line quietly, and maybe we will not even be aware of it until the numbers (and the situation on the ground) confirm it. The victory will be no less sweet, but I don’t think it will be that movie moment when the hero finally comes to the end of his successful quest. No, I think it will be just a happy and grateful sigh after a long, exhausting day.

Is it maybe because there are no real finish lines when it comes to advocacy work? Maybe because you’re never sure you’ve covered all the bases, and because goalposts keep moving on account of the fact that this is the nature of the work? When I listen in on forums and attend meetings with different business sectors and industry groups, I sense the frustration at how slowly progress comes. How come, for example, we’ve been talking about the same problems over and over and have yet to see results on the ground? I share these frustrations. But such is the nature of the work.

We should thrive on small milestones because they show that the work is compounding. The same patience that built RFM’s strength – brand by brand, year by year – will also keep opening doors for more entrepreneurs, more jobs and more upward mobility. I’m optimistic because I can see the momentum starting to show, and because the best outcomes rarely arrive as a sudden miracle, but as steady, shared wins.